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The best alternative capital investment options to get maximum returns
NICK MORGAN Co-Founder & CEO , Opportunity Private Capital
I
am interested in investing around R500,000 of my capital which I have lying in my personal bank account receiving only around 6 % per annum at the moment and is also not tax free . I have been looking at number of different types of alternative investments , crypto , direct property investment and also investing alongside the developer for a period of maximum 2 years .
I am very new to this short-term type of capital investment and I need to be sure that : 1 . I get the maximum return on investment .
2 . That the risk is minimised and the investment is secure for that period .
Can you explain how the Opportunity Private Capital investment works and is it based on a particular property or unit or the entire development ? How is this structured ? What happens if the development is left unsold at the end of the development process . Are returns taxed ? Lastly , do investors receive monthly payments ?
Your strategy is sound in that you are looking to maximise returns and minimise risk , although one could argue that risk mitigation should be the first point . There is a theory promulgated in investing about ‘ myopic loss aversion ’ which surmises that investors are significantly more sensitive to losses than to gains . So , to this point , despite investors achieving healthy returns averaging 16.75 % per annum over the last 5 years , its vital to note that this entire investment strategy is first and foremost focused on protecting the investor capital .
This security is two-fold : A covering bond is held over the entire development to protect investors and in addition , investments are assigned to specific
12 MARCH / APRIL 2023 SA Real Estate Investor Magazine